Market and

Demand Analysis

Group-
2

FN 3
The first step in project analysis is to estimate the
potential size of the market for the product proposed
to be manufactured & get an idea about the market
share that is likely to be captured.

Market and Demand Analysis

 Market and Demand Analysis is concerned with two
broad issues:-

4. What is the likely aggregate demand for the product

/ service?
5. What share of the market will the proposed project
enjoy?

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Key steps in market & demand
analysis

Market and Demand Analysis

Situational Analysis
&
specifications
of objectives

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 Situational analysis and specification of
objectives
In order to get “feel” of the relationship between the product
and its market, the project analyst may informally talk to

Market and Demand Analysis

customers, competitors, middlemen etc.

A situational analysis generates data to measure the market and

get a reliable over projected demand and revenues, a formal
study need not be carried .A helpful approach to spell out
objectives is to structure them in the form of questionnaire, but
bear in mind how the info generated will be relevant in
forecasting the overall market demand and in assessing the
share the market that the project will capture.

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Key steps in market & demand
analysis
Collection
Of
secondary
informatio

Market and Demand Analysis

Situational Analysis
&
specifications
of objectives

5
Collection of data
 Sources(secondary data)
-General sources

Market and Demand Analysis

-Industry specific
 Secondary data are also helpful in designing
subsequent primary research and can provide
a baseline with which the collected primary
data results can be compared.

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Challenges of secondary data
analysis
 1.What were the agency's or researcher's
goals when collecting the data?

Market and Demand Analysis

 2.What data was collected and what is it
supposed to measure?
 3.When was the data collected?

 4.What methods were used? Who was

responsible and are they available for
questions?
 5.How is the data organized?

 6.What information is known about the

success of that data collection? How
consistent is the data with data from other 7

sources?
Key steps in market & demand
analysis
Collection
Of
secondary
informatio

Market and Demand Analysis

Situational Analysis
&
specifications
of objectives

Conduct of
market
survey

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conduct of market survey

 Define the Target Population

Market and Demand Analysis

 Select the sampling Scheme and Sample size

 Develop The Questionnaire

 Recruit and Train the Field Investigation

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•Obtain Information as per the Questionnaire

Market and Demand Analysis

•Scrutinise the Information Gathered

•Analyse and Interpret the Information

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Key steps in market & demand
analysis
Collection
Of
secondary
informatio

Market and Demand Analysis

Situational Analysis
&
specifications Characterizatio
of objectives n
Of market

Conduct of
market
survey

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Key steps in market & demand
analysis
Collection
Of Demand
secondary Forecasti
informatio ng

Market and Demand Analysis

Situational Analysis
&
specifications Characterizatio
of objectives n
Of market

Conduct of
market
survey

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 demand forecating

Market and Demand Analysis

It is the process to estimate the future
demand from various aspects of the
market and demand through primary
and secondary data.

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methods of demand forecasting

Qualitative Methods

Market and Demand Analysis

v Jury of executive method
It involves soliciting the opinions of a
group of managers on expected future
sales and combining them into a sales
estimate
v Delphi Method
This method is used for eliciting the
opinions of a group of experts with the 14

help of a mail survey.

 time series projection methods

v Trend Projection Method

Market and Demand Analysis

This method involves :
Ø Determining the trend of consumption by analyzing past
consumption statistics.
Ø Projecting future consumption by extrapolating the trend.

Yt = a + bT
Yt - demand for year t
T- time variable
a – intercept of the relationship
b – slope of the relationship
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vExponential Smoothing Method
In exponential smoothing, forecasts are
modified in the light of observed errors.

Market and Demand Analysis

v Moving Average Method
As per the moving average method of
sales forecasting, the forecasts for the
next period is equal to the average of the
sales for several preceding periods.

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 casual methods

ØChain Ratio Method

Market and Demand Analysis

ØConsumption Level Method
ØEnd Use Method
ØLeading Indicator Method
ØEconometric Method
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Key steps in market & demand
analysis
Collection
Of Demand
secondary Forecasti
informatio ng

Market and Demand Analysis

Situational Analysis
&
specifications Characterizatio
of objectives n
Of market

Market
Conduct of Planni
market ng
survey

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MARKET PLANNING

 Current marketing Situation

 Opportunity and issue analysis

Market and Demand Analysis

 Objectives

 Marketing Strategy

 Action Programme

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current market situation

 Market Situation
 Competitive Situation

Market and Demand Analysis

 Distribution Situation

 Macro-environment

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opportunity and issue analysis

 Strength

Market and Demand Analysis

 Weakness

 Opportunity

 Threat

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objectives

• Achieve break-even in Three year for Alpha

Market and Demand Analysis

• Sales of Rs 20 million in the first year

• Achieve a top of mind recognition of 75 percent

• Reach 300,000 retail outlets in the First year

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marketing strategy

• Target Segment
• Positioning

Market and Demand Analysis

• Product Line
• Price
• Distribution
• Sales Force
• Sales Promotion
• Advertising

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action programme

 Quarter 1

Market and Demand Analysis

 Quarter 2

 Quater3

 Quater4

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Market and Demand Analysis
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